Murray said the money raised would go towards healthy food programs for low-income families and school programs to close the achievement gap between white students and students of color.

"Like STEM extra-curricular classes, reducing school disparities in discipline, and providing one free year of college at one of our Seattle colleges to all public school students who graduate," he said.

Officials say the measure could help lower rates of obesity and diabetes.

Research shows similar taxes elsewhere have reduced consumption of sugary drinks.

Murray said it would raise about $23 million in the first year and $18 million annually as demand goes down.

But some business and labor groups are urging the Seattle City Council to reject the tax.

Jennifer Cue, CEO of Jones Soda, said their sales would take a hit if this levy is put in place.

"You know, I really want to plead with the mayor and the council members. Just because other cities have gone along and done it doesn't mean that it's right. So I think Seattle could easily take the lead and be innovative by creating something that's a bit more broad based, that doesn't impact one industry so much," Cue said.

The City Council will consider and possibly amend the proposal over the next couple of months.